A new bill kick-started what’s needed for the CBD industry to climb to $20 billion in sales…
Good news travels fast.
Through bipartisan efforts, lawmakers introduced a new bill (H.R. 5587) last week that would allow hemp-derived CBD to be marketed as a dietary supplement.
The point of the bill is to remove the ambiguity and barriers hemp farmers and cannabis companies face in trying to safely and lawfully serve consumer demand.
And with the Food and Drug Administration (FDA) dragging its feet on CBD regulations, H.R. 5587 gave a shot in the arm to Charlotte’s Web Holdings Inc. (OTC: CWBHF).
On January 14, the CWBHF stock price opened at $6.89 per share. On January 15, it closed at $8.08 per share, a 17.27% pop in just one day.
The Roadblocks Will End
The most important part of legalization is having a legal framework that allows companies playing by the rules to profit.
A gray area exists and unscrupulous companies are able to make money if laws are ambiguous and government bodies are dragging their feet, like has been the case with the FDA.
While folks may not be turning to the black market for CBD products, there are companies trying to sell CBD to make a quick buck and don’t care about the quality of the ingredients that go into the product.
They also don’t care if they put unevaluated and false health claims on the packaging.
That all gets cleared up with legalization.
We already know that CBD is on the path to becoming a $20 billion market in just a few years, but what’s happening now is investors are sitting on the sidelines.
Or they panic-sold in November 2019 when the FDA said it sent 15 warning letters to CBD companies for making wild claims.
There can never be a full level of certainty in any investment, but getting CBD regulations finalized will attract a whole new crowd of investors.
You just saw what happened with the proposed bill to regulate CBD as a dietary supplement.
Imagine what will happen when clear guidelines for CBD regulations are passed.
And for Executive Director Don Yocham, cannabis legalization represents a rare opportunity for investors.
But legalization also appeals to Don on a personal level.
In his own words, “You can do well while doing good.”
Find out what else Don wants you to know in the short video below.
P.S. This update on Charlotte’s Web was first released to members of Cannabis Investor’s Report on January 18. Find out how you can start receiving this important investment information as soon as it’s available with an elite Cannabis Investor’s Report membership.
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January 21 2020